SES: E1bn hybrid bond issue

(CercleFinance.com) - SES announced on Friday that it had closed the order book for a two-tranche hybrid bond issue totaling E1bn.


The satellite operator reports that the first tranche of the non-callable issue, amounting to E500m, will carry an annual yield of 5.5% and mature in December 2029.

The second will carry an annual coupon of 6% for an eight-year maturity, i.e. to September 2023.

The proceeds of the transaction will be used, among other things, to finance the recent acquisition of Intelsat.

This morning, analysts at Invest Securities point out that a number of leading companies - such as Arkema and Danone - have recently issued bonds in recent days, thanks to the favourable window of opportunity that opened up on the bond market as interest rates eased.

Hybrid securities - debt instruments combining bonds and shares - offer the advantage of enabling companies to raise funds without jeopardizing their credit rating.

SES, rated 'Ba2' by Moody's and 'BB+' by Fitch, points out that the issue was four times oversubscribed, with total demand of E4bn.


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